mikebor

So I still have to travel but 1 thing I have noticed is that a lot of hotels that are open are still charging a decent amount for a room. I mean they have 2% occupancy but their rates don't seem to reflect that. Not all but some. So I have noticed a general theme by the managers when I call and ask why their rates are so high when nobody is traveling. Or not many are traveling.

The theme seems to be that they don't want to make the rate too low to attract a different type of clientele to stay there. When I press them on what that means they pretty much tell me to read between the lines in so many words.

So I'm asking here, does this kind of response sound prejudice or biased or discriminatory in any way? Like who don't they want staying there, people that can afford a $59 dollar rate but not $159? And I've gotten this same type of answer from multiple managers at multiple hotels I have called.

Again to me it reeks of hidden discrimination. They don't want low income people(and a lot of other adjectives) staying there as it would bring down the reputation of the property. So these hotels would rather have a 2% occupancy at a $159 rate than a 10-15% occupancy at a $69 rate because of the different kind of people who would stay there smh. Unbelievable this goes on in 2020.

GoldenItalianBoy

Here in Italy a lot of hotels are completely closed, others (including some Marriott ones) are charging very high rates, even more than usual rates, and I can't find a decent reason.

TerryK

Most so called low income crowd will not stay in any hotels. They are worried about their next meals. Oh, hotels are likely better off with 2% at $159 instead of 10-15% at $69, using your example, considering housekeeping and related staffing needs.

MePlatPremier

The reason is they don’t want to take in any guests but for some reason they can’t or aren’t allowed to close the entire property. So they want low occupancy to keep staff levels at a minimum.

Newman

I agree with the previous poster.
Marriott is in the business of making money. Keep expenses down. The only ones traveling these days are those that have to travel. No reason to give away rooms at bargain rates.
If you're looking to find "discrimination" under every rock, I'm sure you'll find it, no matter how baseless the charge is.

Newman

Often1

How does OP know what overhead it takes to operate the property? The largest mistake that air carriers made during the last financial crisis was to lower their fares to attract customers, rather than to cut capacity. They have not made that mistake this time and nor will hotels.

At a time when travel is anywhere from discouraged to prohibited, only a small sliver of people who absolutely must travel will travel (+ a few fools). Those people who must travel will pay the $159. Cutting rates won't increase customers. The whole social thing makes little sense as low income people are not likely to rent a room at $59 or $159.

More likely is that properties which can't make a go of it will close down -- at least temporarily. Others will close off floors and provide fewer services.

seawolf

In addition to what Newman wrote, lowering rates is unlikely to drum up new business due to travel restrictions/flight availability but it would likely cause "cancel/rebook" on the existing bookings into a lower rate. Under current situation, net effect on lowering rates is lower overall revenue instead of increase.

IluvSQ

Hookers hosting in-calls.

theOtherHolmes

I for one would not stay at a hotel charging $59 if it regularly charges $159. Why? Because when I travel, I do care about the kind of crowd the hotel attracts. $59 doesn’t mean low income guests, it more likely means young students who like to party and disrupt my sleep.

Xiaotung

Same thing happened in China when COVID-19 first hit there. Very high room rates for very low occupancy. I just assumed that the revenue department of the hotel were still on holiday being on Lunar New Year so no one was taking the time to adjust rates.

360guy

Why not keep the rates at the normal rack rate and reduce the point redemptions .

PrancingPonyGoldMember

As others have said, it's for the same reason that close-in airline tickets are normally outrageously expensive but one's 3 months in advance are cheap: The person making a reservation right now is doing so because they have to, not because they want to. They are not price sensitive, so it makes sense to charge a higher rate.

freed0m

Different clientele does not necessarily mean poor people. It could be mattress runners.

azepine00

Every single business hotel charges 200-300 on weekdays and 100 on weekend; 2-3x difference is typical for supply demand balance...
what;s happening now otoh is very artificial

acregal

I have been planning travel for later this year and have noticed the same thing.

I would say it depends on when you are looking - if it is soon, they are figuring that you have to travel and, in the short term, the hotel will be losing a ton of money either way (and chance of receiving performance based incentives are zero).
In the long term, they have no idea what business or rates will look like and have a ton of other things to do, so it is a very low priority. Better to just let people reserve at the price now then let them cancel and rebook if prices are lower later on.